The Indian government is planning regulations that could require coins to be registered before they are listed and traded on the stock exchange.
According to anonymous Reuters sources, the process is intentionally cumbersome in order to deter investors from holding cryptocurrencies. Only coins that have been pre-approved by the government can be exchanged, those that hold other coins risk a penalty. This regulation would create an entry barrier for thousands of peer-to-peer currencies if enforced. Another high-profile government source claimed that capital gains and other taxes, up to over 40%, could be levied on crypto gains.
However, this is only the latest speculation in the developments that have taken place due to high level crypto meetings over the past week.
Last week Indian Prime Minister Narendra Modi chaired a review meeting on digital currency, where the government finally decided to continue to proactively engage with experts and other stakeholders from the crypto industry. The review decided that India should seek global partnerships and collective strategies on crypto regulation, while considering global examples and best practices.
However, it was also determined during the meeting that the marketing and advertising of cryptocurrencies should be discouraged for fear of misleading the youth of the country. Preventing unregulated crypto markets from becoming avenues for money laundering and terrorist financing should also be a priority in any regulation.
Meanwhile, earlier this week India’s parliamentary finance committee met for the first time with experts and associations from the country’s crypto industry. While several panel members shared the view that crypto should be accepted but regulated, others expressed concern about the potential for misuse. Anticipated by crypto advocates for some time, the first such meeting with government officials has been described as “welcoming” and “gradual.”
Representatives from the country’s major crypto exchanges presented figures, showing 15 million registered users, with a total investment value of around 6 billion rupees ($ 80.5 million). Another estimate lists 15-20 million crypto investors in India, with a total of around 400 billion rupees ($ 5.39 billion) in cryptocurrency.
However, the Reserve Bank of India, which has expressed “serious concerns” about private crypto, was skeptical of the numbers. A senior official believes the RBI is ultimately hoping to ban private cryptoassets in favor of a central bank digital currency (CBDC), which could debut as early as December.
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